Mortgage rates rise near 2002 record

Interest rates on 30-year mortgages rose this week to the highest level since the spring of 2002.

Freddie Mac, the mortgage company, reported Thursday that rates on 30-year, fixed-rate mortgages increased to a nationwide average of 6.80%, up from 6.74% last week.

The increase pushed interest rates on 30-year mortgages to the highest level since they stood at 6.81% the week of May 24, 2002.

The lowest mortgage rates in four decades powered a boom in housing that pushed sales of homes to record levels for five years. But sales slowed this year as mortgage rates have risen.

Some economists express fears that the housing boom could turn into a bust. But Federal Reserve Chairman Ben Bernanke told Congress on Thursday that so far the slowdown "appears to be orderly."

In part, the rise in mortgage rates this week was blamed on increases in inflation, including a 0.3% increase in core inflation as measured by the consumer price index. That increase was reported Wednesday.

Rates on 15-year, fixed-rate mortgages increased from 6.37% last week to 6.41%.

Rates on one-year adjustable rate mortgages rose from 5.75% last week to 5.80%.

Rates on five-year adjustable-rate mortgages rose from 6.33% to 6.36%.

The mortgage rates do not include add-on fees known as points. The 30-year and five-year mortgages carried a nationwide average fee of 0.5 point. The 15-year mortgage had a nationwide average fee of 0.4 point and the one-year ARM carried a fee of 0.6 point.

A year ago, 30-year mortgages averaged 5.73%, 15-year mortgages stood at 5.32%, one-year ARMs were at 4.42% and five-year ARMs averaged 5.26%.